What is the advantages and disadvantages of family businesse

Venture between China and Western countries, the biggest difference is the management of the family system and the independent system, in contrast to so often given us a great lesson and reflection, the Western countries, long-term development of this concept to enable businesses to continue to expand in a short time stronger, but also tend to pay very well paid and this can not help but let a little mean calculate how many Chinese companies are not family system, and so much trouble with the business after giving the suspect disease, but also in the early days to the entrepreneurs have brought certain benefits, according to my own practical point of view, a few observations for family businesses and talk about, look smart entrepreneurs and network operators, what you're thinking?

Reproduced two, for reference.
Family business, "the pros and cons"

From a global point of view, in many countries, family businesses account for almost half of all enterprises, and mainly medium and small enterprises. "Fortune" magazine 500 in 37% of the enterprises are family enterprises, such as Wal-Mart, Ford, Rockefeller, BMW, Sony, Toyota, Samsung, Hyundai and so on. In China, whether it is a family business or Rong Li Ka-shing's business, has played a vital component.
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Samsung Economic Research Institute of China's 200 listed companies in the family business survey found that basic coverage of the Chinese family business in addition to administrative monopolies all other sectors outside; in the geographical distribution, they are mainly concentrated in Guangdong, Zhejiang, Jiangsu, Fujian, Shanghai, the birthplace of China's modern industry and commerce or developed areas. Particularly in Guangdong and Zhejiang provinces, the number of all family businesses account for almost half of the total.

Samsung Economic Research Institute chief researcher Gang Strategy Team, Qiu Jing to the "First Financial Daily" said: "The geographical distribution is not a coincidence, Guangdong is the first in modern China's opening up ports, but since the reform and opening up the reform is often used as experimental field, China's light industry and textile, machinery and electronics industries, export base. "

Family business focused on the barriers to entry are low, less administrative intervention, highly competitive industry. Researcher said: "The family business, including chemical, pesticide, chemical fertilizer, light industry, electronic components, metal processing, machinery manufacturing and other industries a higher proportion of distribution." Access restrictions in these sectors open earlier, state-owned enterprises out of a faster pace, and have some economies of scale, cyclical. In the financial, mining, power distribution and other industries at least. This may be because these are closely related to industry and public utilities, strict government regulation, and the large investment and high risk, limiting the development of family business. copyright finance question and answers,Other-Business&Finance

In recent years, Chinese family enterprises in the rapidly expanding real estate, whether it is SOHO China, the cornerstone of the affinity for the family business, or connate, the Pearl River as a link of brotherhood that the family business, are reflected in the real estate industry . Some family business nearly three years and gradually give up the original main industry, specializing in real estate development. Researcher example, Xiamen Xiongzhen Mining Group (ST Xiongzhen (600,711 shares of it, prices, information, main trading)), the last main lead-zinc and non-ferrous metal production and trade practice has stopped, most of the current revenue to Since trade in IT products and services, real estate business. "This may explain the private capital from one side of the main businesses are not prominent in the market due to environmental degradation or unsustainable environment, the temptation to make the face of speculative real estate boom of sexual selection."

According to the survey, the family business in 2009 annual revenues of 1.351 billion yuan, profit of 114 million, the average profit margin of 8.04%; removed due to acquisitions, asset restructuring and other causes of fluctuations in the family business over the past two years the average annual revenue growth rate to 26.39%. Samsung researcher said: "This shows that compared with other enterprises, family enterprises may be smaller, but more profitable, faster-growing."

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The report stated: "I hope the family business to shelter children and grandchildren, the traditional Chinese patriarchal society's core values ??are reflected in the family business behavior, usually presents a long look, Striving to seek a safe conservative financial strategy. Interestingly, the conservative values and financial strategies of family businesses did not seem to affect the rate of expansion, in the context of the financial crisis but appears to lower debt ratio, more liquid, have higher growth rates. "
Family business and career management

ANTA Sports in Jinjiang, Fujian, is such a typical family business, talking about the development of family business, Chairman and CEO of ANTA Shizhong forthrightly the importance of family for the Chinese private enterprises. "I still tell people, ANTA has been able to today, two brother contributed in the development of enterprises."

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